Independent US dealers looking to sell?

Disruptive changes to the automotive industry have some American dealers considering whether it is time to sell up and move on.

The pending disruptions include the eventual introduction of autonomous vehicles, changes in ownership model and the rise of electric vehicles.

Erin Kerrigan, who runs Kerrigan Advisors, which consults with those interested in buying and selling dealerships, says more small operators are looking at moving on, CNBC reports.

“More and more dealers are saying, ‘Well, it probably is time to exit instead of rolling the dice for the next generation and have them handle potentially a lot of changes in the future.

“There’s no question that auto retail and dealerships have a business model future. It just might not be the one that dealers want to be a part of.”

Kerrigan’s comments follow Morgan Stanley auto analyst Adam Jonas’ predictions that suggested the US market could shrink to ten mega-dealers that would operate more as fleet management operators.

“Stand-alone dealers may be able to continue in small markets, but I think they’ll have trouble in big metro markets,” he says

“There are these trends, and they are a challenge for the future.”